Monday-
Key terms-
Buying on credit, Republican Philosophy, Laissez-faire, stock, stock market, Dow Jones Industrial Average, Buying on margin, watered stock, stock pooling, speculation-with stocks, income inequality, federal reserve board
Dow Jones- named after Charles Dow, stock market indicator, if dow jones does up so does the rest of the stocks. 30 largest companys. Nike, Walmart, Visa, Microsoft, ExxonMobil. It fell 90 percent in the 20's
Tuesday-
Buying on Margin- Buying on credit in the stock market. Causes fake vaule of the stock market.
Watered stock- overpriced stock. Overvauled stock.
Stock pooling- rich put their money together and buy risky stocks, and make lots of money. The rich would then sell it.
Speculation with stocks- looks into stocks for short term. Playing a game with the stocks/ the people who buy stocks for long term.
Income equality- not only one class should have all the money
Federal reserve bank- they failed the banks, can raise and lower interest rates.
October 29, 1929- Known as Black Tuesday.
Causes of the stock market crash- prices were inflated, over production of goods, uneven distribution of wealth, Too much borrowing from banks, Federal Reserve inreased interest rates.
Wednesday-
No school
Thursday-
Income Inequality- it has spiked a lot since the 1930's.
Effects of the Stock Market Crash- Investors and businesses lost millions. Businesses cut production=-laid off workers. Unemployment rate rose- people quit spending money. Depression spread to Europe and other parts of the world.
Cause of the Great Depression- Overproduction of goods, Underconsumption of goods by consumers, Agriculture slump in 1920's due to overproduction, High Protective tariff policies of the 1920's, Taxes benefiting the rich Trickle-down-theory, Stock Market Crash, Banks Closing,
Effects of the Great Depression- Made the government much larger, Deficit spending start, New Deal created many organizations that are still around today- social security, welfare. Fascist, military and communist dictators come to power throuhgout the world.
Vicious Cycle- Companies lose $$ so they lay people off, Unemployment rate goes up and less people buy goods as income has dropped. Companies profits fall so they have to lay more people off, Cycle just keeps repeating.
People survived by, helping neighbors, not wasting, Hoovervilles were made, Breadlines, Soup Kitchens, Hoboes Hopping Freight Trains, Selling Apples
Friday-
Dust bowl- It happened in the great plains. The land was over plowed so there was nothing for the top soil to hold on to. It started blowing everywhere. okies- people who moved from oklahoma. They packed up there things and went for better oppurtunities.
Hoover- He struggled with the great depression because of his pholisiphies. He didn't want people to be lazy so he stuck to small government during this time. People thought Hoover did nothing. He helped people get food in WWI. He stepped up but not enough.
hoovers fight against the great depression- Encouraged people to be patient, stay positive and help each other, Federal Farm Board Stabliize prices and promote the sale of ag products, Norris- La guardia Act, Strengthened labor unions.
Hoover Moratorium- One year halt on the payments from war. Mexican Repatriation- Mexican immigrants were encouraged/forced to go back to Mexico, Revenue Act- Increased taxes so US gov't had $$, Hawley-Smoot Tariff- Raised tariffs to record levels
President's Organization for Unemployment Relief- Help US citizens who lost their jobs due to the Great Depressoion, Its purpose was to coordinate local welfare agencies, without spending government money, The program ended on June 30, 1932 because the government was not willing to help the agencies by giving them money. Local agencies became overwhelmed by the magnitude of the problem of the Great Depression.
Reconstruction Finance Corporation- give loans to banks and state and local govt's and they will create jobs. Gave states loans fro emergency relief needs.
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